Parveen Ashfaq's Clothing Sales Group

Parveen baji is the wife of Mr. Ashfaq and lives in a small area named Bund Road of City Lahore, Pakistan. She owes a two-room brick house and has been living in it for the last 2 years. She is the mother of four children: three sons and one daughter. All of her children are enrolled in a local school in her neighborhood. Parveen baji's husband has a clothing-selling business. He has been in this business for the last 8 years. Parveen baji herself is a housewife and prefers to do household work and take care of her family. She is applying for a loan to expand her husband's business by buying more clothes.

She is joined in her loan group by a few more members. Nabeela baji and Mumtaz baji each want a loan to buy scrap (plastic bottles, waste papers) for their scrap businesses. Ifat baji wants a loan to repair an auto-ricksahw (a local three-wheeled motor vehicle). Ailas baji wants a loan to buy material (cloth, thread) for her bedsheet-making business.

This is a group loan. The loan funds will be distributed among the group members, each of whom will invest in her own business. The members mutually guarantee one another's loans. If one member does not repay, the other members are responsible.



About Group Loans
In a group loan, each member of the group receives an individual loan but is part of a group of individuals bound by a group guarantee. Under this arrangement, each member of the group supports one another and is responsible for paying back the loans of their fellow group members if someone is delinquent or defaults. Learn more

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